The EU offers strong support for the realization of the Kemi biofuel refinery

EUR 88.5 million of NER 300 investment subsidies to advance the project significantly

The European Commission has decided to grant EUR 88,5 million of NER 300 investment subsidies for the biofuel refinery planned by Kaidi in Ajos, Kemi. The subsidy, which is directed towards producers of renewable energy, was initially granted in 2012 for the realization of a biofuel refinery planned by Vapo. Vapo halted the project in 2014.

“We are very delighted with the commission’s decision. Granting the NER 300 subsidy for the Kemi biofuel refinery, together with the positive message of the European Commission’s summer package, strengthens Kaidi’s opportunities to advance the project significantly. It is also a clear sign that the commission believes in the project, and in the developing biofuel market,” says Pekka Koponen, CEO of Kaidi Finland.

The total investment for the plant is estimated to be up to EUR 1 billion. In addition to hundreds of subcontracting jobs, the refinery would create hundreds of full-time positions at the refinery once operational. Overall, the construction process will bring about an additional 4,000 man-years of work. Discussions with subcontractors and other stakeholders are ongoing. The final investment decision will be made by the end of 2016.

The fact that the summer package published on Wednesday also showcases the nationally important biofuels is equally pleasing for Kaidi. The package highlights the clear objectives for the advanced biofuels and the mixing obligations in creating the biofuel markets. It is important for the whole bioenergy sector, that the emission calculations for the energy use of wood remain neutral, as lined by the international environmental panel IPCC.

“The contents of the summer package and the publication of the mandatory national emission goals show that the European Union is committed to cutting the emissions made by traffic. Advanced biofuels have a key role for Finland in achieving the goals in reducing emissions. The next step is to ensure that the commission’s vision is included in all of the upcoming propositions,” says Koponen.


Kaidi, press release, 2016-07-22.


European Commission
European Union
Kaidi Finland